When you are managing a big construction project that is tied to a deadline, the contractor you choose to do the job is very important. Although you may enter into contracts with a construction company for your project, there are other ways to help ensure the project gets done. Surety bonds through small business insurance in New York are one type of option.
Surety bonds are between a project manager, contractor, and surety company. There are various types of bonds available, such as a bid bond, ancillary bond, performance bond, and payment bond. These types of bonds are common for construction projects that are valued over $150,000.
If Something Goes Awry
If something goes wrong with your construction project and your contractor defaults, your surety bond kicks into action. The surety company then gets to work to find a new contractor to meet your construction needs. If no contractor can be found, the company then pays you for financial losses tied to your project.
Work With a Reliable Provider
Its important to work with a reliable contractor with any construction project, but its also important to work with a good provider when looking for small business insurance in New York. This includes surety bonds. Although you dont ever plan on your contractor defaulting, you need to be able to trust your surety company in case that happens. Take the time to research your bond options and the company through which the bond will be issued.